Interest rates today are at historic lows. However, many homeowners are not taking advantage of the low rates. There are several good reasons why you should not be delaying in getting your home loan refinanced. With the current state of the economy, the only way to get a good rate is to refinance today. Here are several reasons why you need to get a good refi today.
Lower Your Mortgage Payments Even if you have the best terms, if your monthly payments are higher than they should be you will not save much money. With today’s interest rates, you can probably afford a lower monthly payment. If you have the means and the willingness to act on this, it is possible that you can refinance your home even with high payments. It is never easy to lower your payments but doing it for one year will put a dent in your debt and show your mortgage company that you are willing to work with them.
Higher Property Value You will increase your property value dramatically when you get a fixed mortgage. The sooner you purchase a home, the more money you will save. This is another great reason to refinance today. The longer you live in your property, the better your mortgage will look in the eyes of the lender.
Higher Down Payment When you refinance today, you can take a big step toward paying off that first mortgage. You will now only have one payment to worry about. If you have a smaller loan to pay off, then you will be able to get that mortgage paid off a lot quicker. You may also save money by lowering your interest rate as well. This will allow you to make a lower payment each month on your home loan.
Lower Your Monthly Payments Did you know that by refinancing today, you can lower your monthly payments by anywhere from two to four percent? If you want to make sure that you are saving money, this could be a good option for you. If you were to go with a variable rate mortgage, your payment could go up at any time. However, by choosing a fixed mortgage rate, your payment will not go up for the next five years or more.
Higher Interest Rate With a fixed mortgage, you will have security in knowing that your mortgage payment will not fluctuate. This is something else that people do not think about when they get a mortgage. However, if rates start going up, it is easier to budget for your loan.
Why Not Refinance Today? Many people do not realize just how easy it is to have a great rate on their mortgage when they choose to refinance today. The market is very competitive, which will help to get you a great mortgage rate. However, it is important to remember that if you take out a second mortgage on your home, the interest rates are likely to go up as well.
Remember that a fixed mortgage is a great option if you are having trouble making your current mortgage payments. You can have the security of knowing that your monthly payments will not change. However, you should also realize that if you do not make your payments on time, your home could end up in foreclosure. This is why it is so important to carefully consider this before getting into a home loan.
When Is A Good Time To Refinance? There are many different factors to look at when deciding if it is a good time to refinance your home mortgage. You can check with your lender to find out the current rates available for your type of mortgage. In addition, you can also check with an online mortgage broker to see if there are any specials that they are offering.
Who Is A Good Candidate For A Mortgage? Homeowners that own their home and have built equity in it are usually a good candidate for refinancing. You should try to determine if the amount of equity you have improved will allow you to qualify for a new mortgage. Some homeowners may have to pay closing costs if they take out a new mortgage. Your lender should be able to tell you what the total costs involved in a refinancing will be.
Where Can You Get Good Mortgage Rates? Fixed mortgage rates today can be obtained from many sources. Many local banks offer competitive mortgage rates. Another good way to get a fixed rate today is to go online and look for a mortgage broker. These mortgage brokers often have access to many lenders and will be able to shop for you on your behalf. If you want the best interest rate possible, you should definitely check with a mortgage broker.